The end of IBKR + VT: a cheaper, safer, less US-dependent alternative

[leman]

@Strabor

Interactive Brokers forces investors to pay 40% U.S. inheritance tax

That was a fascinating read, thank you

@gaijin

I actually calculated with around CHF 350/hour for a lawyer. (Wrongly?) assuming that it would be an easy task

I can only confirm that good lawyers cost good money.

No idea about other cantons, but in Geneva, reputable firms with US tax knowledge will assign you a senior associate for Fr. 600/hour. May you reign forever, but if you die tomorrow, that might be a good solid 15k for your 115k portfolio. Looks like a sizeable cost, given the questionable nature of hypothetical excess returns.

That being said, the best lesson life taught me so far is that good lawyers (and good doctors) are worth every penny.

@gaijin

Based on the articles of MP and the Poor Swiss
If they saw a high probability of spending CHF 10k for a lawyer, they would probably include it in the total calculation of their choice for VT+IB.

Learning is a lifelong process. I remember MP’s blog articles being rewritten after comments or remarks from this community.

MP/TPS learned with us along the way, and are still learning. If the topic of US unreliability continues gaining traction in our society (which is likely, it’s in the news every day, including today) and in this forum, you will probably see blog articles on this matter sooner or later.

Guy Parmelin gives in to Washington without obtaining anything in return. The President of the Swiss Confederation commits to removing tariffs on American products, while punitive duties remain in place, sparking criticism in parliament.

@qwertzuiop

Seems a bit ridiculous how people are fighting each other tooth and nail about this topic here. The advantages and disadvantages are clear. You can feel comfortable with this one way or another, also depending on your individual situation, and both is perfectly fine.

I agree but it’s maybe in the nature of this community: disproportionate amounts of energy are put into saving small amounts of money, for example by comparing credit card and bank account setups to maybe save a couple hundreds per year. I believe MP spent time changing his bank and/or credit card setup (and writing about it) several times in recent years. Just look at the success of credit card cashback conversations.

Plus, it is a mostly English-speaking forum where many come from abroad, including from cultures where Mustachian carefulness about small amounts is more common than in Switzerland.

While MP&TPS may make Fr. 50 with each credit card referral, I assume that many blog readers [trying to save a couple hundreds on credit card fees] don’t have the amount of wealth that would justify bothering with the IRS and/or Lenz & Staehelin, but the conversation is interesting anyway.